Restaurant ownership can feel like an uphill battle due to hidden noncompliance and other issues among day-to-day operations— leaving owners susceptible to higher counts of theft and loss. In fact, according to Management Science, restaurants’ revenues increased by approximately 7% after simply implementing a video surveillance system; thus, surveillance either increased worker productivity, decreased latent employee theft, or both. Video surveillance drives restaurant success in three key ways: mitigating liability and risk, preventing loss, and increasing operational efficiency. With cloud-based video management software (VMS), you can gain complete and remote visibility into all of your restaurants. This gives restaurant leaders the ability to combat claims with video evidence, confront employee theft, and ensure a great customer experience. So this begs the question: are you currently monitoring all of the risks lurking in your restaurant?

Mitigating Liability and Risk

Liability and risk pose huge challenges to restaurant leaders working to grow their businesses. Each day, profitability goals could be one slip and fall, harassment case, or break-in away from being completely decimated. Owning a restaurant business is incredibly demanding, making it difficult to effectively spot the small risks that may fester into a costly lawsuit. In those blind spots of management, danger zones for workplace injuries can become invisible and liability claims can spiral out of control. Video surveillance helps owners navigate their stores daily to pinpoint areas of concern.

Video surveillance gives restaurant owners the ability to mitigate fraudulent liability claims and reduce the cost of legitimate claims. When investigating harassment cases or instances of customer dissatisfaction, without concrete evidence restaurant management teams must rely on potentially faulty testimonials and hearsay to combat the complaint. With irrefutable video evidence, restaurant management can reveal the truth behind claims and quickly determine the correct action towards resolution. Some businesses have even seen a decrease of $600,000 in claim costs after implementing a surveillance system (Business Insurance).

Envysion is an essential tool for being more responsive to customer comments. Instead of relying just on the customer’s point of view, we can easily review video and audio to get the whole story and take the appropriate action quickly and decisively.

Inman HodgesPresident, Hodges Management Co.

When it comes to employees, the average worker’s compensation claim costs between $2,000 and $5,000 in the restaurant industry (QSR Magazine). So, if employees are consistently incurring injuries on the job, this can continually chip away at a restaurant owner’s bottom line. Video surveillance can reduce general liability by allowing management to identify safety issues and reveal potential solutions. Ultimately, surveillance is the key to preventing liability cases and reducing legal costs because of the certainty that irrefutable video evidence provides.

Loss Prevention

While restaurant owners and operators are working tirelessly to overcome workforce challenges and remain profitable, loss and shrinkage are continual road blocks on the path towards success. From employee theft to food spoilage, there are a multitude of loss sources lurking in every restaurant. Luckily, video surveillance can reveal instances of loss and help uncover the underlying cause.

Employee theft is the greatest contributor to overall restaurant loss with costs of at least $14.5 billion annually in the restaurant industry (QSR Web). And, even in low-crime areas or with a crew that feels more like a family, research shows that theft is likely still occuring in those restaurants. According to the U.S. Chamber of Commerce, 75% of employees steal from the workplace at least once, and half will steal repeatedly. That is an enormous amount of revenue disappearing down the drain that could easily be recovered with effective loss detection and ongoing performance monitoring.

What’s worse—employees are becoming more and more creative with the ways they steal money through suspicious transactions and sneaky point-of-sale (POS) manipulations. Restaurant owners and operators can identify and verify these incidents more efficiently with integrated point-of-sale data and video surveillance. Suspicious transactions are automatically flagged by exception-based reports, which can be investigated swiftly with video footage of the transaction displayed right next to the receipt.

Voids, refunds, and unlogged employee meals can cause a disparity between sales profits and food cost percentage. With food theft, inventory depletes while the projected bottom line either stays the same (void) or also depletes (sweethearting). In order to account for those discrepancies in exception-based reports, employees may covertly enter employee meal discounts or voided transactions. Video surveillance integrated with a restaurant’s POS system assists owners in revealing suspicious transaction trends and illuminating cases of food theft.

Operational Efficiency

The keys to success for leading brands in the restaurant industry such as Chick-fil-A and Panera all come down to operational efficiency. Seamlessly orchestrated operations are rewarded with return customers and higher ticket amounts. However, for most restaurant owners and operators, maintaining operational efficiency is a real struggle. Poor operations can result in poor customer service, unhappy employees, and hampered revenues. So, customers may be discouraged from returning and high turnover rates exacerbate already present workforce challenges. Video surveillance can be used to remotely observe multiple store locations from any web-enabled device. From there, management can quickly determine if employees are in compliance with regulations and ensuring the brand promise.

A comprehensive restaurant performance audit program can help reveal deep-seeded operational issues occurring in your restaurants that manifest into more costly theft and loss incidents. Combining video surveillance, exception-based reporting, and expert-driven audit programs can reduce restaurant loss while also saving management the time of burrowing through extensive paper reports or hours of video on top of an already packed work day.

Click to learn more about how Envysion’s Managed Video Solution can help you mitigate risk, prevent loss, and increase operational efficiency in your restaurant.